Mounting CNP credit and debit card fraud causes more harm than just the billions of dollars in losses and expenses to FIs and merchants. CNP credit and debit card fraud creates cardholder anxiety and negatively affects consumers’ online shopping behaviors, much to the detriment of FIs and e-commerce merchants.

In fact, the study found that 55% of cardholders decrease online shopping, reduce payment card usage, and close payment card accounts after facing a fraudulent event. FIs and merchants need to act now, introducing new CNP fraud prevention methods that diminish rising losses and costs while alleviating cardholder angst. Industry providers will benefit from introducing new fraud prevention methods that do just that. It is paramount that fraud prevention solutions promote consumer trust and confidence that the consumer’s payment card data will be kept safe while shopping online.

“Our study revealed that 78% of online shoppers want more protection for their payment card data when shopping online,” said Madeline Aufseeser, CEO of Tender Amor. “Consumers desire more security while transacting online. Consumers stated that their online shopping declines after a fraud event. Lower card usage, card account attrition, and less shopping are the silent revenue killers for FIs and merchants alike. Avoiding these long-term ramifications, is in the industry’s best interest. It ensures consumers feel safe clicking the “buy” button.”